At a glance
Sen. Bob Hall, R-Edgewood, introduced legislation that would abolish the Texas Lottery during a May 5 committee hearing. Hall said the Texas Lottery Commission has violated state law in recent years by allowing lottery tickets to be purchased outside of businesses’ operating hours, online and by minors.
The Texas Rangers and the Texas Attorney General are investigating the state’s lottery process following the bulk purchase of millions of dollars of lottery tickets in April 2023, and a recent $83.5 million jackpot win involving a Northwest Austin courier company.
Hall’s Senate Bill 1988 would repeal a 1991 state law that established the Texas Lottery.
However, the lottery could be dissolved without Hall’s bill. It is currently being evaluated by the Texas Sunset Advisory Commission, which reviews all state agencies on a 12-year cycle. The lottery is set to automatically expire Aug. 31 if lawmakers do not pass legislation extending it.
“This is definitely not a partisan issue, because I know that every elected official is fully committed to upholding a high level of honesty and integrity in the Texas government,” Hall told the Senate State Affairs Committee during the May 5 hearing. “I strongly believe that the only legislative change that would have a meaningful impact and eliminate the culture of corruption ... in the Texas government is legislation that completely and permanently abolishes the Texas Lottery Commission.”
How we got here
State senators unanimously approved legislation in February that would make it a crime to purchase or sell Texas lottery tickets online or through a mobile app. Senate Bill 28, also by Hall, proposes banning lottery courier companies, which accept online orders for lottery tickets and purchase them on behalf of customers. That bill is scheduled to be heard in a House committee on May 6.
During a Feb. 24 committee hearing, Hall said the Texas Lottery Commission changed its rules in 2015 to “include electronic means” and again in 2019 to allow Texans to purchase lottery tickets from third-party sellers.
“[This was] the beginning of changing what it means to sell Texas lottery tickets, allowing couriers to operate in our state under the disingenuous assumption that they are simply taking orders over the phone for players. ... The lottery commission says it implemented this change to allow for lottery sales to take place in the middle of the lanes at a grocery store. However, it is undeniable that lottery couriers fit perfectly within this framework,” Hall said Feb. 24.
In April 2023, a single purchaser bought nearly 26 million tickets each worth $1 within a 72-hour period, senators said. A courier service in Colleyville sold the winning ticket for a $95 million jackpot, according to the lottery commission.
Senators said they were concerned bulk purchases like this could indicate fraud and money laundering, Community Impact previously reported.
“The lottery commission ignored the legislature’s intent and changed the rules to benefit criminals,” Hall said May 5. “The winners used stolen money to buy the tickets, the courier companies were the middleman between the groups, and at best, lottery commission officials were deliberately indifferent.”
“We are focused on ensuring we follow the law, that we are in agreement with the law,” Rey said May 5.
“But the agency didn’t follow the law,” Hall shot back.
More details
The lottery generated nearly $2 billion for education and $26.8 million for the Texas Veterans Commission in 2024, according to the agency’s website.
If SB 1988 becomes law, lottery commission funding that remains from the current biennium would be distributed to public schools, according to a breakdown of the bill. Hall’s bill does not propose replacing school funding that comes from the lottery; however, lawmakers are considering separate bills this session that would raise state support for public education by billions of dollars.
SB 1988 was left pending in the Senate State Affairs Committee on May 5, although committee members could vote to send the bill to the full Senate during a future meeting.
